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Section 24
Production Permit
: (1) After approving the contractor's development program and budget, the department will issue the production permit to the contractor, mentioning the production area as well. Such a production area will be polygonal with geographical coordinates (geographical coordinates) containing the site, and such production area will also include an intermediate area (buffer zone) so as not to extend to the site within the contract area and the site area.
(2) If the contractor locates more than one commercial site in the contract area, a separate production permit shall be provided for each site.
(3) If the contractor discovers natural gas sites that are not involved with crude oil and have not yet been developed for commercial use, and if the contractor applies for a production permit with a preliminary development program before the end of the exploration period, the department will grant the contractor a preliminary period of five (5) years to enable the contractor to develop the commercial market. Production permission will be provided for. Before the expiration of said five (5) year period (and every five (5) years thereafter), the Department and the Contractor shall review the development of the commercial use of natural gas and, subject to Section 23, each time for a maximum of five (5) years, if both parties so desire. The permit can be renewed. The contractor will submit a detailed development program to the department in addition to obtaining the commercial release of such natural gas.
(2) If the contractor locates more than one commercial site in the contract area, a separate production permit shall be provided for each site.
(3) If the contractor discovers natural gas sites that are not involved with crude oil and have not yet been developed for commercial use, and if the contractor applies for a production permit with a preliminary development program before the end of the exploration period, the department will grant the contractor a preliminary period of five (5) years to enable the contractor to develop the commercial market. Production permission will be provided for. Before the expiration of said five (5) year period (and every five (5) years thereafter), the Department and the Contractor shall review the development of the commercial use of natural gas and, subject to Section 23, each time for a maximum of five (5) years, if both parties so desire. The permit can be renewed. The contractor will submit a detailed development program to the department in addition to obtaining the commercial release of such natural gas.